I keep getting asked about buying energy stocks—"Because they're so cheap, Bob!"—but I'm very nervous about recommending them here. I do think that six months from now it's less likely that oil will be in the $30s than the $50s or $60s or even higher, but it seems to me the big stocks are still not cheap. Look at these 2015 P/Es:
Big Energy (2015 forward P/E)
Remember, the S&P 500 is trading at a little over 15 times forward earnings.
I do see some cheaper names among some, but not all, of the shale plays:
Oil Stocks (2015 forward P/E)
My problem is this: Even with lower P/Es for some shale plays, I'm not sure that's the right way to look at it, that the value guys aren't chasing the wrong tiger by looking for low P/Es. That seems a far less useful metric than capital expenditures and production estimates (supply side), as well as the future price of oil and the state of global demand (demand side).